So far in 2022, there has been a flurry of million-dollar deals in Nigeria’s renewable energy sector.
The deals, which amount to several millions of dollars, can help improve Nigeria’s energy industry and benefit Nigerians, some of whom have little or no access to on-grid power.
Nairametrics has been tracking these deals and monitoring several of the projects being executed, already executed or set to be executed by these renewable energy companies.
What you should know
- Renewable energy is a viable alternative to the power supply problems in energy-starved Nigeria.
- At the October 2022 Ehingbeti Summit held in Lagos, World Bank’s senior energy specialist, Ash Sharma, said Nigeria has the largest energy deficit in the world, presenting 90 million people who are unconnected to the national power grid. According to him, this presents a huge business opportunity for renewable energy companies in the country.
- Some challenges ranging from debts across the power value chain, ageing infrastructure, and the inability to maximize gas resources due to a lack of gas processing infrastructure, are hindering the power supply in the country.
- In September 2022, Nigeria’s power minister, Engr. Abubakar D. Aliyu, revealed that the ministry was developing regulations, policies, and setting up institutions for the establishment of affordable, reliable, and sustainable energy for Nigerians.
- During the 2022 United Nations General Assembly (UNGA), Buhari said Nigeria’s energy transition plan, would transform Nigeria into a clean-energy-led country.
With the million-dollar deals now flowing into Nigeria’s renewable energy sector, there is hope for a possible solution to the country’s electricity challenges.
Highlighted below are some of the deals and ongoing energy projects.
Daystar Power’s acquisition
- In September 2022, Daystar Power was acquired by Shell in a multimillion-dollar deal. The deal would accelerate solar energy adoption across Sub-Saharan Africa and increase installed capacity to 400MW. The company currently has 300 power installations with an installed solar capacity of 32 megawatts.
- Daystar Power Group operates in Nigeria, Ghana, Togo, and Senegal, with headquarters in Lagos state. The company is a privately held renewable energy company that was founded in 2017 and operates solar hybrid power systems intended to provide affordable, reliable, and clean power to commercial and industrial (C&I) businesses and consumers across Africa.
- The company offers solar power services to customers for either a cash sale or a monthly fee, enabling companies to reduce power costs, have a stable power supply, and reduce pollution. The company’s solar power solutions are 100% remotely monitored and managed through a network operating centre.
Engie Energy Access Nigeria’s $60 million mini-grid project
- In September, Nairametrics reported that CrossBoundary Energy Access Nigeria (CBEA) and ENGIE Energy Access Nigeria (ENGIE) signed a project finance agreement to build a $60 million portfolio of mini-grids that will connect over 150,000 people to electricity in Nigeria over the next four years.
- ENGIE Energy Access Nigeria started operations in Nigeria in 2018. ENGIE Energy Access Nigeria is a Pay-As-You-Go (PAYGo) and mini-grid solutions provider in Nigeria. The company offers expandable solar home systems, providing lighting, phone charging, TV, radio, and more, financed through affordable instalments through mobile money (MTN Momo, Quickteller, and Paga).
- The company enables those seeking clean, off-grid energy to access both power upgrades and other life-changing loans.
- Earlier in Q1 2022, ENGIE Energy Access announced plans to electrify 2,700 unelectrified healthcare centers across Nigeria. The company will implement the electric power supply intervention programme in four identified levels of healthcare provisioning.
Darway Coast’s deal with FG to develop solar mini-grids
- In Q1 2022, Darway Coast was one of the solar mini-grid developers that signed a €9.3 million with the Federal Government to develop projects in unserved areas through the Rural Electrification Agency (REA). The financial and technical support for the project was to be provided by the European Union and the German Government within the framework of the Nigerian Energy Support Programme (NESP).
- Darway Coast is a leading provider of sustainable and cost-effective energy solutions for households and businesses. The company was founded in 2014 and provides solar/hybrid electricity off-grid energy services, intended to empower households and businesses through micro-utilities and micro-grids.
- The company specializes in providing scalable renewable energy systems such as mini-grids, turnkey solar grids/hybrid solutions for electric distribution, power generation, and substation, enabling clients with cost-effective and reliable substitutes for renewable energy. The company is backed by impact investor, All on and the United States African Development Foundation (USADF).
Husk Power System’s Sunshot Initiative
- In Q2 2022, Husk Power Systems launched the Sunshot initiative targeted at building 500 microgrids by 2026, the establishment of 400,000 connections that benefit over 2 million people, provision of affordable energy to 8,000 women-led business customers, and the electrification of 700 public health clinics and 200 private hospitals among others.
Beebeejump’s deployment of solar systems
- Earlier this month, Beebeejump announced that it has deployed about 500,000 solar systems in rural communities across Nigeria, through the output-based fund (OBF) grant agreement to improve energy access across Nigeria under the World Bank-funded Nigeria Electrification Project (NEP). The agreement also approved 52,500 of the 75,000 solar home system units to be provided by Beebeejump.
Green Village Electricity’s Abuja launch
- In September 2022, Green Village Electricity (GVE) launched the Abuja-based Wuse market 1MW solar PV interconnected mini-grid. The United States Special Presidential Envoy for Climate, Senator John Kerry, was present during the launch. The mini-grid will improve the power supply to the commercial hub while reducing noise and environmental pollution.
- GVE offers solar energy, and energy efficiency solutions for residential, and commercial clients.
- As of April 2022, GVE was the largest industry player with a total installed capacity of 4.54MW and total operational mini-grids of over 15 plants. The company was founded in 2009 and has since, impacted over 11,000 households and businesses.
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